M’sians are planning their inheritance, but fear the money won’t last

A growing number of Malaysians are formalising their plans for what should happen to their money and assets after they pass away, according to a recent survey. However, this increased organisation has not necessarily brought them greater peace of mind about the future. A survey conducted in August found that 37% of Malaysian respondents had fully documented and communicated their legacy plans in 2026, up from 15% the previous year.

This represented the highest proportion among six Asian markets surveyed and the lowest share of Malaysians without any legacy plan at 10%, down from 23% in the prior year. Despite these strides, Malaysians with plans to pass on financial assets or wealth remain deeply concerned about whether that wealth will endure beyond the next generation.

Among the 80% of Malaysians fearing their inheritance might not survive, market volatility topped the list of worries at 54%, followed by beneficiaries' readiness to manage inherited wealth at 49% and family conflict at 47%. These findings indicate that legacy planning involves more than just deciding who receives what; families must also ensure their intentions are understood and beneficiaries are prepared to manage the inheritance.

Millennial Malaysians expressed the most concern and optimism, with 90% fearing their wealth might not last, yet 69% believing their legacy would positively impact future generations. Malaysians' top choices for leaving a legacy included education, at 51%, followed by supporting family members and funding education. While more Malaysians are writing down their plans, younger generations are increasingly considering how wealth and responsibilities will be passed on.

However, communication gaps remain: while 66% said older family members had discussed plans, only 32% felt the plans were fully explained. Formal family meetings were the most common venue, at 51%, though informal discussions occurred in 40% of cases. The survey also revealed a rise in using financial advisers, from 16% in 2025 to 31% this year.

A will remains a fundamental tool for distributing assets, but the survey suggests that written instructions alone are insufficient. Families must also consider whether beneficiaries comprehend the plan, are ready to manage the inheritance, and what the ultimate purpose of the wealth is. Thus, while putting a legacy plan on paper is a crucial first step, maintaining the integrity of that legacy may hinge just as much on actions taken after the documents are signed.